Corporate Finance Assignment/ Professional Essay Writers
May 6th, 2020
- The most efficient of all the different types of secondary markets is the
- auction market.
- direct search market.
- dealer market.
- broker market )5 points).
- Which of the following is not a widely known stock market index?
- The Dow Jones Industrial Average.
- The OTQ Composite Index.
- The New York Stock Exchange Index.
- The S&P 500 Index. (5 points)
- Which of the following statements about preferred stock is FALSE?
- Preferred stock has a higher-priority claim on the firm’s assets than the common stock.
- Failure to pay dividends on preferred stocks will result in a default.
- Preferred stock has a lower-priority claim on the firm’s assets than the firm’s creditors in the event of default.
- Preferred stock typically pays a fixed dividend. (5 points)
- Preferred stock is sometimes treated like debt security because:
- legally preferred stock is debt security.
- preferred dividend payments are similar to bond interest payments and are fixed in nature regardless of the firm’s earnings
- preferred dividends are deductible from taxable income just like interest payments on bonds.
- preferred stockholders receive a residual value and not a stated value. (5 points)
- Which of the following statements is TRUE?
- Preferred stockholders are considered to be the true owners of public corporations.
- Dividends paid to preferred stockholders are usually not fixed.
- Preferred stockholders do not typically have voting rights.
- Preferred stock can never be converted to common stock (5 points). Get Finance Help Today